Owen County State Bank Set To Host 75th Anniversary Celebration Saturday

Cake, Refreshments Available Saturday At Main Spencer Branch

by Michael Stanley Staff Writer

Owen County State Bank President Gordon Wells (left) is pictured with former OCSB Presidents George Allison (center) and Lyle Brighton. The three spent time Monday discussing the changes they've seen made during their respective tenures with the financial institution. (Staff Photo) It has been 75 years since the former entity, beginning as the Citizens Bank of Freedom, opened its doors in 1922, with capital stock totalling $10,000. What is now known as the Owen County State Bank expanded to become the county's primary financial institution after surviving the Great Depression as other surrounding banks failed. In Spencer, the Exchange Bank closed its doors in 1929, and the National went under in July of 1932, while both establishments in Gosport, one institution in Patricksburg, as well as Coal City, faltered.

To celebrate the 75th year of Owen County State Bank, President Gordon Wells announced the donation of $75 for each class room in Owen County.

"It is to assist the teachers in supplementing the needs of the students, whether it be craft materials or basic materials within the curriculum," Wells noted. "I've spoken with acting superintendent Greg Linton, and he has confirmed that he can handle things on that end. So we will donate $75 in celebration of our anniversary to each k-12 classroom. That's what this bank is based on, giving back to the community."

February 4, 1933 marked the first day of business in Spencer. Months later, the bank would be temporarily closed by President Franklin D. Roosevelt's "Bank Holiday." However, after receiving an 'A' rating, the bank reopened. On December 13, 1933, the Indiana Department of Financial Institutions issued the new charter, the new private entity opened for business January 3, 1934 with deposits of $153,951.

Officers and directors of the "new" bank included president, John Hoot, vice president, Frank Dunn, directors Arthur Hoadley, W.G. Moss, Floyd Livingston, C.A. Newmeyer, and Charles Dillon. Lewis Nelson was cashier, Elsie Robinson, assistant cashier and Minnie Hoot served as bookkeeper, while Carl Abrell was added to the staff as teller. The Exchange Bank building was purchased and remained the home of the bank until 1936 when in June, the bank purchased the former home of the defunct Spencer National Bank, housing the institution for the next 23 years.

On May 9, 1945, Owen County State Bank purchased the depression surviving Gosport State Bank, which has been operated as a branch of Owen County State Bank since that time. Lyle Brighton was named manager of the new branch.

"I kind of started back when things were still done the horse and buggy way; everything was done manually. Even some of the bookkeeping was still being done in pen and ink," Brighton said. "It was mostly in the days before the proof machine came along; that was the beginning of the enunciation of banking. It was more of a period where you knew all of your customers. You knew their history, their family. You knew probably three different generations who were still customers of the bank. "That was back in the good ole' days when you had with your customers who had operated you for a long period of time and wanted to borrow money, sign a note and went home with the money.

Now there's all kind of paper work. I remember one day I had a customer come in who had done business with us for a long time. I think it was $500 he wanted. Back in the beginning, I would have made that note, and he would have been gone. I had papers all over my desk, and one of the secretaries came back to my desk, and I said, 'Look at this mess here. Several years ago I would have had one paper, and it would have been a signed note.' She looked at it and said, 'Well, where's your application?' And I said, 'Application? This guy has borrowed money for 25 years, I'm not about to ask him for an application.'

Then the bank started to grow. When I started in '47, the total assets of the bank were $3 million."

Despite the addition of new equipment from time to time, increasing efficiency, by 1958 the bank staff had grown to 15 persons, and deposits were more than $5 million dollars. The directors purchased the quarter block at the corner of Franklin and Montgomery Streets with a vision of expanding the facilities. In 1959 the bank moved to this new location.

Boyd Fulk was appointed manager of a new branch in Coal City after the building was completed in 1966, giving the bank a fullservice facility in the western portion of the county.

The first of two expansions to the Spencer office came about in 1967, doubling the operating space, as the second, including a four-bay autobank, was opened in 1972.

In 1977, Lyle Brighton was named president of the bank, assuming the office previously held by 25-year president J.K. Burns, succeeding Lewis Nelson. Brighton served with the board of directors until 2006.

"In about 1950, things began to grow just leaps and bounds. We started getting more up-to-date equipment. The proof machine drastically changed the way our operation was done," Brighton noted. "I think that all through my period when I was active in the bank, we were constantly changing our method of operation."

Brighton was elected chairman of-the-board in 1984, as Burns retired from the position, while George Allison became the new bank president. Brighton mentioned that he hired Allison after becoming acquainted with him as a banking equipment salesman.

"I've been on the board since 1967, and I was president for about 13 years," Allison said. "One thing the bank has always felt very strong about is local ownership. Our bank is very widely owned; we don't have any one person, family or group that owns a very big share of the bank, and we never really have had. It's basically all owned in Owen County, and we feel very strong about keeping it that way. Many communities like this in Indiana have gone to ownership by out-of-county multi-bank holding companies. We have taken the approach many years ago that we feel we are better off, the citizens of Owen County and the staff is better off, if we keep it like it is. As long as we keep strong management, I think we can do that."

November of 1989 marked the beginning of operating an on-site electronic banking system, better known as an ATM, on East Morgan Street. The ATM-age of banking is likely the largest change for OCSB over the years, according to Wells.

"The biggest change in operations would be the electronic banking, the debit card, the enhanced programs we do with pay by phone, as well as pay by computer," Wells noted. "We're soon going to announce the ability to get your statement online, so you will be able to get your account statement whenever you want it. That is another feature we're coming up with. Then the fact that we work with a number of personnel kind of excites me to see the work ethic we're able to have with the local people. Our people are local, and they do their shopping and other activities here, so we're all a part of one big family."

With assets approaching $150 million in the mid 1990's, and additional operating space required, the decision was made to build a new facility with room for future growth and better visibility to our potential market.

In 1996, the Spencer main office staff and trust department moved to its current headquarters at 201 W. Morgan Street. With months of advanced planning and a smooth transition, the main office closed after regular business hours on Friday and reopened Monday, April 15th in the new location.

On December 31, 1997, George Allison retired as President of the Bank, completing 35 years of active service, and was elected chairman of the board in 1998, replacing Lyle Brighton, who continues to serve on the board of directors.

"When I was here, we were kind of forced into it through growth and technology to build the building that we're in now," Allison said. "The building where we were before, was remolded and added onto four times. Our services are delivered so much differently now, so many of them are delivered electronically. It seems funny, but wiring itself is a big factor in a commercial building now, especially a financial service building."

Gordon Wells was named president and chief executive officer on January 1, 1998, and maintains leadership of Owen County State Bank today with a total staff of 74 full and part-time employees.

In his time as president of the bank, Wells has encountered a few extenuating circumstances.

"Basically, we have come through a period of Y2K, which was monumental, 9/11, which was economically monumental, and both of those have worked out to be sort of a non-event. Certainly, Y2K, we prepared for and had no problems, 9/11 was economically, a difficult time around the nation, but locally, not so much of an effect," Wells explained. "Then of course, we've had the housing boom, which has been a travesty I think on the national level, but mostly because of our underwriting standards, and our strict adherence to the policy that I inherited, we have not had quite the difficulty of repossessions and foreclosures. Although in the county the numbers have been quite large. So we stayed out of predatory lending; we tried to stay in the niches we knew we could operate to serve the local people. The theme that this bank has been blessed with is of course, the integrity that we attempt to put into every action that we endeavor. Integrity has let us continue to serve the county and community. We try to give back through some of our programs, most recently is Casual For Charity, where we once a month, address another charity, and local people benefit from that charity. There are at least 12 a year."

While Brighton spoke of knowing his customers during his tenure at the bank, Wells mentioned an ironic change in banking.

"Now there is a law where you're supposed to know your customer as you deal with them, after 9/11 and all of the terrorist concerns," Wells said. "Congress has actually passed a law that says, 'Know your customers.' Isn't that funny? We go back to when he 'knew them;' now we have to 'know them."